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Suppose the market for surgical mask is competitive. A typical firm producing surgical masks has the following total cost function: C=200q-12q 2 +2q 3 where
Suppose the market for surgical mask is competitive. A typical firm producing surgical masks has the following total cost function:
C=200q-12q2+2q3
where C is total cost and q is the output level.
- Find the marginal cost and average cost functions of a typical firm producing surgical masks. Show your steps.
- From your answers to (a), find the output level that corresponds to the efficient scale of a typical surgical mask production firm. At this efficient scale, find the corresponding price level, and the size of the profit. Show your steps as appropriate.
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